A Common Measure of Profitability Is the

question 51

Multiple Choice

A common measure of profitability is the

• A)current ratio.
• B)free cash flow.
• C)return on common shareholders' equity ratio.
• D)debt to total assets ratio.

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Definitions:

Accounting Profit

The difference between total revenue and total explicit costs, not accounting for implicit costs, according to traditional accounting methods.

Entrepreneur's Potential Earnings

Entrepreneur's potential earnings are the anticipated income an entrepreneur expects to generate from their business ventures, considering the risks and opportunities involved.

Annual Lease

is a contract specifying the terms under which one party agrees to rent property from another party for a period of one year.